 |
| Delegates from Group 11 discuss the draft Law amending and supplementing a number of articles of the Law on Public Debt Management. Photo: PT |
To clarify the powers of the Government, the Prime Minister, and the Ministry of Finance.
This information was provided by Minister of Finance Nguyen Van Thang during the National Assembly's group discussion on the Draft Law amending and supplementing a number of articles of the Law on Public Debt Management (Draft) on November 3rd.
Authorized by the Prime Minister to present this draft law to the National Assembly, the Minister of Finance stated that the draft amends and supplements the content of 23 out of 63 articles of the Law on Public Debt Management, including amending and supplementing 17 out of 63 articles, abolishing some provisions in 5 articles, and adding new provisions in 5 articles.
One of the key areas of revision is empowering the Prime Minister and the Ministry of Finance with certain tasks related to debt management, and strengthening the autonomy and accountability of local governments in deciding and utilizing their budgets. Accordingly, amendments and additions are being made to more clearly define the duties and powers of the President, the Government, the Prime Minister, and the Ministry of Finance.
The draft also amends and supplements regulations to remove obstacles in the negotiation of foreign loans, expands the group of entities eligible to access foreign government loans, and strengthens regulations on the disclosure of public debt information and data.
In addition, the draft amendments and supplements to clarify the principles for allocating and using ODA loans and preferential foreign loans, adding a new point that assigns the Government the authority to regulate the disbursement and relending rates in accordance with the socio-economic situation of each period, and strengthening the monitoring mechanism...
The proposals put forward by the Government have essentially received the approval of the reviewing body, the Economic and Financial Committee of the National Assembly.
During group discussions, many delegates shared the common view that the draft had been meticulously and comprehensively prepared, cutting down on many administrative procedures, creating favorable conditions for businesses and citizens, and promoting socio-economic development in the new context.
According to delegate Nguyen Manh Hung (Can Tho), the effectiveness of ODA loans has not met expectations in recent times, especially with very slow disbursement and limited volume. Therefore, the delegate highly appreciates the Ministry of Finance's proposal to amend this content to minimize administrative procedures, resolve obstacles, and accelerate disbursement progress. At the same time, expanding the scope of relending and disbursement from ODA loan sources will make implementation more effective and more suitable for borrowers.
To expedite implementation, Representative Hung suggested considering a stronger decentralization mechanism, whereby the Prime Minister would only approve the annual borrowing plan, and the Ministry of Finance would approve specific loan proposals.
Regarding regulations on subsidiaries of wholly state-owned enterprises, delegates proposed regulations that would allow them to independently carry out investment procedures, propose and negotiate ODA, without going through intermediaries.
Regarding this matter, the draft stipulates: "Ministries, central agencies, provincial People's Committees, enterprises wholly owned by the State, and subsidiaries of enterprises wholly owned by the State shall submit proposals for ODA loans and preferential foreign loans to the Ministry of Finance."
During the review, the National Assembly's Economic and Financial Committee disagreed, arguing that the management of foreign debt should be linked to the responsibility of the parent company, as the parent company is the entity that signs the loan agreement and repays the debt.
The responsibilities of commercial banks need to be clearly defined.
Speaking at the group meeting, National Assembly Chairman Tran Thanh Man remarked that public debt management has been relatively good in recent times. To date, public debt, foreign debt, and government debt are all below the permitted limits.
Regarding the allocation of ODA loans and preferential foreign loans, the draft adds regulations on disbursement to provincial People's Committees and public service units. The Chairman of the National Assembly requested that, during implementation, the Government must strictly regulate the conditions for disbursement, the disbursement rate, and assess the impact on the central budget.
Besides the draft Law amending and supplementing a number of articles of the Law on Public Debt Management, the draft Laws amending and supplementing a number of articles of the Laws on Insurance Business, Statistics, and Prices have also been submitted to the National Assembly for consideration and approval at the Tenth Session.
According to Minister of Finance Nguyen Van Thang, the goal of amending these laws is to promptly remove institutional obstacles, simplify administrative procedures, and promote decentralization and delegation of power, shifting strongly from "pre-approval" to "post-approval" coupled with enhanced inspection and supervision to create favorable conditions for investment and business activities, and unlock resources for socio-economic development.
Regarding lending methods, the draft regulations stipulate that commercial banks will not bear credit risk when relending to public service units; however, relending to businesses for investment in priority investment programs and projects will not incur credit risk.
In the case of government lending institutions, a portion of the credit risk is borne by the lending institution.
According to the Speaker of the National Assembly, the impact needs to be carefully assessed, because if lending is done without credit risk, it could lead to negligence in the procedures for appraising borrowers, creating significant risks that the state agencies would have to bear.
"Lending without regard to efficiency, and banks lacking responsibility in monitoring loans, affect repayment capacity and public debt safety. The most worrying aspect is that loans are used for other purposes, and banks lack guidance on inspection and monitoring procedures," the National Assembly Chairman noted.
The Chairman of the National Assembly suggested that the law needs to clarify how the responsibility of banks is defined in cases of default. If banks are required to share a portion of the risk, the percentage should be specified. "There needs to be a regulation in the law, or the Government should be tasked with providing guidance through a decree," the Chairman of the National Assembly noted.
In his subsequent explanation, Minister of Finance Nguyen Van Thang stated that he would study and fully incorporate all feedback to finalize the draft.
Regarding some issues raised by delegates, the Minister clarified that the draft introduces regulations to facilitate the proposal process for enterprises and subsidiaries of 100% state-owned enterprises. Subsidiaries capable of borrowing ODA funds, such as those of the Vietnam National Energy and Industry Corporation, are mostly very large companies and corporations that are usually proactive in their business planning. Allowing them to propose and take responsibility for projects will significantly speed up implementation.
However, the Minister also stated that further research is needed on the responsibilities of the parent company, with clear regulations aimed at streamlining internal procedures.
He added that, in the past, preparing project documents and signing ODA loan agreements often took too much time, accounting for up to half or even the entire agreement period, thus causing many projects to be delayed, unfinished, and requiring the search for alternative funding sources.
"The Ministry of Finance has been very proactive. The Minister has worked directly with the World Bank and major Vietnamese funding organizations to find solutions to accelerate the implementation of projects," Mr. Thang informed.
According to the Minister, a major limitation affecting the effectiveness of ODA loans lies in project preparation. Many localities do not prepare thoroughly or adequately, leading to the need to return loan funds.
Therefore, the Draft has fully integrated practical issues and unified the point of contact to increase the efficiency of capital resources.
Regarding regulations on loan disbursement, the Minister affirmed that the drafting agency will study and review the issues raised by the delegates. According to the Minister, in addition to the policy bank (Vietnam Development Bank), this time the draft opens up regulations for commercial banks to participate, to promote competition and avoid monopolies.
However, the Minister also agreed that such a regulation would raise issues related to risks as mentioned by the representative. The drafting agency will study and calculate the level of responsibility and the extent of risk.
Regarding the allocation of funds to public service units and localities that are not yet budget-autonomous, the Minister stated that the Government will issue a decree specifying the detailed regulations to classify the appropriate allocation levels and percentages for each locality.
According to the agenda, the draft Law amending and supplementing a number of articles of the Law on Public Debt Management will be discussed in the National Assembly hall on the afternoon of November 18th, and voted on for approval on the last day of the Tenth Session (morning of December 11th).
Source: https://baodautu.vn/tang-hieu-qua-su-dung-no-cong-d428589.html
Comment (0)